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Cheaper Interest on bikes

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by vossy53, May 8, 2011.

  1. I regularly receive BIKE magazine (British) and it amazes me the deals the poms get from Japanese bike manufacturers. I mean interest rates from 0 to 2% over a 3 year period. You could easily argue that these deals would sell a lot more bikes, reduce the number of cars on the road, reduce the footprint and would make me very happy!! Come on lets have these same deals DOWN UNDER!!

  2. One of the reasons that the Poms get ultra cheap interest rates is that their economy is fvcked. Like real fvcked and with no real hope of recovery.

    Our interest rates are higher because we have an economy that any OECD finance minister would kill for. Not that you'll find that little gem anywhere in our blinkered and insular media.

    The rates that manufacturers can afford to charge for in-house finance are dependent on the wider economy and not so much on a desire (real though it may be) to rip Australians off.
  3. Yes Pat is right, The UK Prime lending rate is 0.5%, ours is 4.75% and soon to rise. The Bank of England is trying to stimulate their economy back in to life. The Reserve Bank of Australia is trying to control inflation and put the brakes on ours.
  4. There must be more to it than that, because they were also offering those 0% interest deals 3-4 years ago, before the current recession took hold.
  5. Well, there may be slightly more to it. 0% finance deals have been part of the UK new vehicle marketplace (cars rather than bikes though) for at least a couple of decades. However, they're not necessarily that great when you read the small print as, although you pay no interest, you'll generally be paying full rrp or, sometimes, more and might also have to stump up a substantial deposit. You may also find yourself tied into the lender's specified insurance for the period of the deal, which is unlikely to be cheapest (and that's a very significant factor given the astronomical insurance premiums prevalent in the UK).

    There ain't no such thing as a free lunch. You can bet the pound of flesh will be extracted somewhere.

    That said, there is also vastly more competition in the UK bike market. Most major cities have a street somewhere that is, literally, lined with bike shops. There are a lot more buyers too. With a population nearly 3 times that of Oz and per-capita bike ownership at a much higher level than we are ever likely to see here there are some economies of scale.

    There is much to be said for riding a bike in the UK. Unfortunately, it's much of it is an overcrowded, depressed dump. I can live with higher interest rates for the privilege of not having to live there any more.
  6. The only thing I miss was being able to drive to my work and back (Wiltshire to Oxfordshire) 50 mile round trip, and not see 1 speed camera.
    Now that was fun.

    In Melbourne you're lucky if you can drive 50 metres without seeing a speed camera, and that is no fun at all!
  7. Dunno when you left but, based on my trip last year, it ain't that way any more. Not in the south of England anyway. There was still scope for a bit of fun in Wales and the Scottish Highlands though.
  8. I had to LOL at that! I can't imagine any circumstance that would cause me to live there again. I visit to see my mum, but there will be a time when that won't have to happen and I can honestly think of nothing I'd want to do there. Except leave.

    Pat, how long you been in Aus? And isn't Perth basically England but with better weather?
  9. Take away taxes and so forth and don't they pay about as much as we do for a new bike.
    But sell five times the units.
    Ps one of my girls just moved to Perth. Gorgeous, single and mad as a cut snake. The town will never be the same. She is looking for bar work if anyone knows of any.
  10. 15 years this year and Perth is not so much England as 1955 :D.

    Seriously though, I do miss aspects of the UK, such as the museums and other historical bits (which, as I was reminded, are far too numerous to visit more than a tiny, token fraction in a month) but the thought of living there permanently on a modest income is deeply unattractive.
  11. Last time I was in Perth all I heard was English accents....
  12. Working in and around the mining industry I seem to meet more South Africans. Agree there are a fair few Poms around though. Not sure why. Maybe the airfare to Perth was cheaper :D.
  13. so just a question
    if you plan to get a new bike
    wat is the cheapest interest rates?
  14. 0% Interest is simply the cost of the finace (whatever it may be, low-medium-high) being absorbed elsewhere in the transaction (usually a reduction of the dealer margin or accounted for in the manufacturer rebate system).

    The only place you see really fat finance margins for these sorts of transactions is in the case of bad credits and a lot of that fat is needed to cover or insure against losses. It's unlikely those are taken on by vendor financiers themselves unless dealing with assets that have almost no immediate depreciation (not bikes).

    To answer bluebear, the cheapest interest rates will depend very much on your credit profile.

    For something like a bike, if your income will support a high enough limit and it's cheap enough, then a low rate credit card may be a viable option. These will often offer the first 6-12 months at 5%-10% interest and then an ongoing rate at around 12%. If you're disciplined this can be good as it's very easy to pay it off sooner if you earn some extra $.

    The downside is the limit will be lower as it's not secured against the bike and the interest rate may change over time. (Also, make sure you compare any fees). That and you can be tempted to respend up to the limit, this is where a pair of scissors comes in handy.

    A secured fixed term loan may get as low as 9% but would more likely be at least 11%+. Credit Unions can be good for this money if you're a member.